Tenth loss in eleven days
Shanghai shutdown sends Tesla shares plummeting
12/27/2022, 7:21 p.m
In recent years, Tesla has stormed from one all-time high to the next on the stock exchanges. But this year, the papers of the electric car manufacturer are flying out of the depots in droves. The most recent bad news is idle production lines in the most important plant in Shanghai. The rivals suffer too.
Tesla is threatened with another big daily loss on the US stock exchanges. After announcementthat the lines in the Shanghai plant will largely stand still in December and January, investors threw the papers of the e-car pioneer out of their depots in a high arc. In the meantime, the share fell by more than 10 percent to just over 105 euros. On December 1, a share certificate was worth more than 186 euros.
According to the “Wall Street Journal”, the former darling on the stock market is steering towards his tenth loss in the past eleven trading days. For the year as a whole, Tesla is among the worst performers on Wall Street, falling 69 percent.
As can be seen from internal shift plans, Tesla only wants to produce in its most important plant at the beginning of 2023 from January 3rd to 19th. The company did not give a reason for this, but there was demand for the controversial billionaire’s electric cars Elon Musk in the world’s largest automobile market has recently eased noticeably. At the end of 2021 and 2022, the electric car manufacturer did not take any lengthy production breaks in Shanghai.
Rivals suffer too
The development for Tesla is particularly problematic because it does not only seem to affect the Chinese market: shortly before Christmas, the carmaker had the prices for its most popular models in the United States reduced by several thousand dollars.
In the wake of Tesla, the shares of the Chinese e-car rivals Rivin and Lucid also lost between five and six percent. The dwindling interest also dampened sentiment on Wall Street overall, with the Dow Jones index of blue chips and the broader S&P 500 opening little changed at 33,224 and 3843, respectively. The index of the technology exchange Nasdaq lost 0.3 percent to 10,462 places. The enthusiasm for the recent easing of quarantine in China seems to follow.